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NC mine to raise capital for exploration

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Funds would also be used to continue exploration programmes on the company’s highly prospective tenements

File picture: Itumeleng English/African News Agency (ANA) Archives

AUSTRALIAN mining company Orion Minerals has announced an $11 million (nearly R150 million) capital raising via a placement to fund finalisation of the feasibility study on the company’s flagship Prieska zinc-copper project scheduled to be completed late 2018 or early 2019.

The company said funds would also be used to continue exploration programmes on the company’s highly prospective tenements located in the Northern Cape and for working capital.

Orion said Tembo Capital Mining Fund and its affiliated entities had also confirmed continued support of Orion through subscribing for $6.3 million in shares, and that the company would seek shareholder approval to enable the chairman Denis Waddell, to subscribe for 6.8 million shares to raise $250 000.

“The placement, in addition to the recent sale of the company’s Queensland tenements to Evolution Mining for $2.5 million, a $5 million share placement to Independence Group NL and the $6.3 million share placement to Tembo, significantly strengthens the company’s financial position for future growth,” Waddell said.

– African News Agency